Advise Sarah How to Maximize Her Utility If MU_A=8, MU_B=20,

question 68

Multiple Choice

Advise Sarah how to maximize her utility if MU_A=8, MU_B=20, P_A=4 and P_B=5.

• A)Consume equal amounts of both goods.
• B)Consume more of good A and less of good B.
• C)Consume more of good B and less of good A.
• D)Lower the price of good B.
• E)Raise the price of good A.

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Definitions:

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